On Saturday 26 August, the European insurance and reinsurance federation, Insurance Europe, reacted to the European Commission’s consultation on the retail investment strategy (see EUROPE 13189/21). It is concerned that certain provisions, particularly with regard to inducement, will dissuade investors.
For Insurance Europe, which “fully supports the goals” of the strategy presented by the Commission on 24 May (see EUROPE 13187/21), the text should show flexibility and leave it up to the Member States to decide whether stricter requirements for the payment of inducement are necessary (see EUROPE 13178/20).
In addition, Insurance Europe believes that the Commission’s proposed provisions risk making “the consumer investment journey longer and more burdensome” and that “leaner, more streamlined and more cost-efficient sales processes” should be favoured.
In addition, the federation fears that the text will “will push consumers towards the cheapest product, even if it means having fewer or no guarantees or lower insurance coverage and less flexibility”.
Finally, it believes the issue of the ‘Key Information Document’ should be part of the discussions in the EU Parliament and Council. On this point, Insurance Europe believes that the document, intended to provide clear information on the main features of a product to consumers wishing to invest their savings, should remain a “standardised” document and “better display insurance features”. (Original version in French by Thomas Mangin)